Comments on: The Simple Dollar Podcast #12: The Anti-Budget http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/ Simple, applicable personal finance advice for the modern world Fri, 10 Feb 2012 07:17:51 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: David @ DINKS Finance http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/comment-page-1/#comment-757638 David @ DINKS Finance Wed, 19 Aug 2009 18:12:52 +0000 http://www.thesimpledollar.com/?p=4149#comment-757638 As a young and enterprising individual (self-proclaimed, of course) I do not necesarily like the whole budgeting idea. I have read quite a bit of books by Robert Kiyosaki (rich dad, poor dad) and he says the same thing. That is because spending less is only one option; the other being making more. I would prefer to find ways to generate more income so I can buy what I want, instead of restraining myself through budgeting. -DC As a young and enterprising individual (self-proclaimed, of course) I do not necesarily like the whole budgeting idea. I have read quite a bit of books by Robert Kiyosaki (rich dad, poor dad) and he says the same thing. That is because spending less is only one option; the other being making more. I would prefer to find ways to generate more income so I can buy what I want, instead of restraining myself through budgeting.

-DC

]]> By: Liko http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/comment-page-1/#comment-757493 Liko Wed, 19 Aug 2009 14:33:40 +0000 http://www.thesimpledollar.com/?p=4149#comment-757493 I think people are missing the point behind what a budget is. It's nothing more than a tool to accomplish a goal. Sort of like a hammer, to build a house. But without an end goal it's kind of pointless. The goal should dictate where you want to go. The budget simply paves the path to it. The reasons budgets fail is because people take their eyes off the goal. Whenever you deviate away from the budget ask yourself this "Is this item more important to me than my current goal?" This method has helped me out when I paid off $43K in debt. I used the zero based budget that Dave Ramsey recommends. It's a powerful tool! But without the end goal it will fail. Also, a budget is NOT just a tool to track past spending. A budget is supposed to tell the future dollars where to go. You don’t create a budget for last month; you create a budget for the next month. A zero based budget means that all your spendable income is allocated for, and there's not a single dollar left that's not put in a category. So if you forget to put something on there it doesn't happen! Otherwise it will jeopardize your goal and/or you spend more than you make. Remember, budgets aren't just indented to save money. It's indented to spend your money purposefully. "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it"— Luke 14:28 I think people are missing the point behind what a budget is. It’s nothing more than a tool to accomplish a goal. Sort of like a hammer, to build a house. But without an end goal it’s kind of pointless. The goal should dictate where you want to go. The budget simply paves the path to it. The reasons budgets fail is because people take their eyes off the goal.

Whenever you deviate away from the budget ask yourself this “Is this item more important to me than my current goal?” This method has helped me out when I paid off $43K in debt. I used the zero based budget that Dave Ramsey recommends. It’s a powerful tool! But without the end goal it will fail.

Also, a budget is NOT just a tool to track past spending. A budget is supposed to tell the future dollars where to go. You don’t create a budget for last month; you create a budget for the next month. A zero based budget means that all your spendable income is allocated for, and there’s not a single dollar left that’s not put in a category. So if you forget to put something on there it doesn’t happen! Otherwise it will jeopardize your goal and/or you spend more than you make.

Remember, budgets aren’t just indented to save money. It’s indented to spend your money purposefully.

“For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it”— Luke 14:28

]]> By: Bill http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/comment-page-1/#comment-757198 Bill Wed, 19 Aug 2009 03:51:04 +0000 http://www.thesimpledollar.com/?p=4149#comment-757198 We use the zero based budget Dave Ramsey style with the full fledge cash envelope system. Every two weeks because thats how I get paid. It works for us. We do have an entertainment envelope managed by my wife, but that is only for family entertainment. Books, dvd's and fast food is covered under individual blow money. Our budget is different every two weeks and has never been the same. I enjoy our budget meeting and I credit the budget from taking us from 20k in consumer debt to debt free and a 6 month emergency fund, We invest 15% into retirement and our kids college is being funded and we are saving over 1k/month to pay off the mortgage. We always made good money, but we were sloppy. The budget gives us focus and keeps us on the same page as to our goals. We use the zero based budget Dave Ramsey style with the full fledge cash envelope system. Every two weeks because thats how I get paid. It works for us. We do have an entertainment envelope managed by my wife, but that is only for family entertainment. Books, dvd’s and fast food is covered under individual blow money. Our budget is different every two weeks and has never been the same. I enjoy our budget meeting and I credit the budget from taking us from 20k in consumer debt to debt free and a 6 month emergency fund, We invest 15% into retirement and our kids college is being funded and we are saving over 1k/month to pay off the mortgage. We always made good money, but we were sloppy. The budget gives us focus and keeps us on the same page as to our goals.

]]> By: Generation Y Investor http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/comment-page-1/#comment-756890 Generation Y Investor Tue, 18 Aug 2009 22:00:32 +0000 http://www.thesimpledollar.com/?p=4149#comment-756890 I'm not really a budget person... but I do have a system. Everytime I get paid I take 25% of my check and invest/save it. Then I live off the rest. As long as I don't spend more than that I'm good. This system works well for me b/c I'm single right now but when I get married next year we'll probably have a budget. -Gen Y Investor I’m not really a budget person… but I do have a system. Everytime I get paid I take 25% of my check and invest/save it. Then I live off the rest. As long as I don’t spend more than that I’m good. This system works well for me b/c I’m single right now but when I get married next year we’ll probably have a budget.

-Gen Y Investor

]]> By: Moneymonk http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/comment-page-1/#comment-756842 Moneymonk Tue, 18 Aug 2009 21:27:05 +0000 http://www.thesimpledollar.com/?p=4149#comment-756842 I agree I'm not a budget person but it's good to revisit every now and then I agree I’m not a budget person but it’s good to revisit every now and then

]]> By: FrugalCubicle http://www.thesimpledollar.com/2009/08/18/the-simple-dollar-podcast-12-the-anti-budget/comment-page-1/#comment-756775 FrugalCubicle Tue, 18 Aug 2009 20:36:20 +0000 http://www.thesimpledollar.com/?p=4149#comment-756775 Budgeting My Way: Ask yourself three questions: 1. Where am I spending too much money(excluding house)? 2. Where is the next place I'm spending too much? 3. Am I stong enough to reduce spending in the categories for the answers provided in Questions 1 & 2? Budgeting My Way:

Ask yourself three questions:

1. Where am I spending too much money(excluding house)?

2. Where is the next place I’m spending too much?

3. Am I stong enough to reduce spending in the categories for the answers provided in Questions 1 & 2?

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